i just received this private message this morning from a member of the finance manila stock market forum ... tho im allergic to "pat in the bak congratulatory messages" (no offense meant to the pm sender), id like to quote it here as a post on how i enter a stock position ... nothing original really ...
the private message:
Thanks for one of the best stock blogs shoyu...
Others are just hyping their favorite ipits like this one or just further hyping a very oversold stock to prompt people to bring it higher so that they will maximize their profits.
Pero iba ka sa kanila, you advocate the buy low/sell high discipline. I hope I can learn even just 20% of your skill hehehe....
Keep it up!
my reply ...
its all there in the charts ... the key is just to manage the risks ... the chart will show thru the macd (yung 3 macd indicators ko sa blog) if the bottom is more likely realized already .. then one can enter a small position .. 1/3 or 1/2 of one's budget for the stock .. so that if the stock goes further down (the bottom has not been reached pala .. only 1/3 of ur money is exposed .. and one can just execute one's cut loss ...
on the other hand .. if truly the bottom has been reached ... the price should advance ... then one can add another 1/3 .. .. adding some more as the price further moves up .. until ones full position is bought ... thus .. even before the macd buy signal has been generated .. one is already fully invested and ready to sell na to those who are just responding to the macd buy signal
tnx for reading the blog
tho i dont believe in luck (kelangan kasi hard work and preparation) .. goodluck na den!
back to: my trading rules
